President Donald Trump has expressed a desire to reduce tariffs on China, but he says the timing will depend on the actions of Beijing. Speaking at the White House, Trump told reporters that he might announce new tariff rates in the coming weeks, contingent on ongoing negotiations with various countries, including China.
Trump highlighted the significant tariffs he has imposed, which currently stand at 145 percent for most Chinese goods. He noted that the U.S. has been taken advantage of for many years and emphasized the need for fair trade agreements. "If we don’t reach a deal, we will set the tariff," he stated.
The president mentioned that he has a good relationship with Chinese President Xi Jinping and expressed hope for a successful negotiation. He confirmed that discussions with China are "active," suggesting that both sides are eager to find common ground.
These comments come as Wall Street reacted positively to the potential for easing trade tensions. The S&P 500 and Nasdaq Composite both saw significant gains, fueled by optimism that the U.S. and China might resolve their trade disputes.
Reports indicate that the Trump administration is considering cutting tariffs on Chinese goods by 50 to 60 percent to help lower tensions. However, any reduction would likely come with the expectation that China would reciprocate by lowering its own tariffs on U.S. products.
China has made it clear that it opposes protectionist measures like tariffs but is prepared to stand firm if the U.S. continues its aggressive trade stance. A spokesperson for the Chinese Foreign Ministry stated that while China does not seek conflict, it is ready to defend its interests if necessary. They also urged the U.S. to engage in respectful dialogue instead of threats.
The ongoing trade war has raised concerns about a global economic slowdown, prompting the International Monetary Fund to lower its growth forecast for 2025. Meanwhile, a coalition of twelve U.S. states has filed a lawsuit against Trump, arguing that his tariffs are unconstitutional and harmful to the economy. Arizona’s Attorney General called the tariffs a reckless tax increase that will ultimately burden consumers.
As the situation unfolds, all eyes will be on the negotiations between the U.S. and China, with many hoping for a resolution that benefits both nations.